What does Public Liability Insurance cover?

It covers claims for bodily injury, property damage, and legal costs if a third party holds you responsible for an accident. For example, if a customer slips on a wet floor in your store, the policy may cover medical expenses and legal fees.

How does a universal life insurance policy differ from a term life policy?

Universal life insurance provides permanent coverage with cash value, whereas term life insurance only covers a specific period and does not accumulate any cash value.

What does "underwriting" mean in relation to an insurance policy?

Underwriting is the process by which an insurer assesses the risks of a potential policyholder and determines the terms, coverage, and premiums for their policy.

How does a captive insurance company differ from traditional insurance?

A captive insurance company is owned by the insured business and primarily covers the parent company’s risks. Traditional insurance involves purchasing coverage from third-party insurers who manage multiple clients. Captives allow companies to control premiums, coverage options, and claims, unlike traditional insurers, which operate for profit.

What are the consequences of committing insurance fraud?

Insurance fraud can lead to denied claims, policy cancellations, fines, civil lawsuits, and criminal charges that may result in imprisonment.

What is the difference between "proportional" and "non-proportional" reinsurance?

Proportional reinsurance shares both premiums and claims proportionally between the ceding company and the reinsurer. In contrast, non-proportional reinsurance (such as excess of loss) provides coverage for claims exceeding a certain threshold, with the reinsurer covering only the amount above that limit.

Does Uninsured Motorist coverage cover passengers in my vehicle?

Yes, in most cases, UM coverage will extend to passengers in your vehicle who are injured in an accident with an uninsured or underinsured driver.

What is reimbursement in insurance?

Reimbursement is the compensation an insurer provides to a policyholder after a covered loss or expense, based on the terms and limits of the insurance policy.